Internet price increase in Nepal by massive 13 percent

internet price increase in nepal

Internet Service Provider Association of Nepal,ISPAN,is set to increase the price of internet from 17 July by massive 13 percent.

Internet service provider association of Nepal release a press statement on 15 July stating that ” The TSC imposed by government to ISP will be taken from customers as government failed to implement the agreement done last year”. According to association leader, Bhojraj Bhatta “Last year, ISP association of Nepal and Nepal government have done agreement to amend the bill related to TSC. But now, government have failed to change the internet tax law, so ISP are forced to put the 13% tax on customers head in order to pay to the government”.

So, what is TSC?

TSC is the Telecommunication Service Charge which is paid by the ISP to the government for the services they are providing. In 2018, government of Nepal passed a bill regarding the telecommunications, as all the institute providing internet services should pay 13% tax as TSC to government. Indeed,in 2018,due to oppose and critics from customers to the government, this 13% was levied and a coordination committee was formed to address this issue. But, as noticed issued by ISPAN,”Government didn’t fulfill the agreement so they are compelled to take this action”. The notice released by ISPAN is as follow:

Fig: TSC notice by ISP in Nepal

Currently, 39 registered ISP are providing internet services to about 9 lakh customers in Nepal by wireless, cable and fiber technology. Out of this, fiber technology has been a dominant covering 60% of the internet market. And among them, Worldlink communications is the leading one.

Also read: The top and best ISP in Nepal in 2019

This action taken by ISPAN is sure to increase the price burden to the customers. Already, Nepal is listed as a the most expensive internet service provider in the whole world. Now, this 13% telecommunication service charge will leveled up the Nepal in the top position. So, the alternative solution should be adopted in-order to cutoff this increasing internet services.